Jerald David August Presented at the American Law Institute CLE Video Webcast Event, “3.8% - What the New Medicare Tax Means for Business Entities and Business Owners"

Posted on December 18, 2012

On Tuesday, December 18, 2012, Jerald David August presented at the American Law Institute CLE Webcast Event, "3.8% - What the New Medicare Tax Means for Business Entities and Business Owners"

Starting on January 1, 2013, the 2010 Health Care Act will subject investment income to the Medicare tax for the first time in the history of Social Security. Under the new Medicare Contribution tax – partners, LLC members, and S-corporation shareholders will be exposed to a 3.8% tax on net investment income attributable to their share of operating income if the activity generating the income is “passive” under Section 469 with respect to the taxpayer.